A Writer of a Call Option Closes the Position by

question 55

Multiple Choice

A writer of a call option closes the position by

• A)purchasing the stock
• B)selling the stock
• C)purchasing the option
• D)selling the option

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Definitions:

Normally Distributed

Describes a statistical distribution where data points are symmetrical, with most of the observations clustering around the mean and fewer and fewer occurring as they move away from the center.

Shifting Values

Refers to altering the numerical or categorical data points in a dataset, leading to changes in analysis outcomes.

σ

The symbol for standard deviation, a measure of the amount of variation or dispersion of a set of values.

Normal Distribution

A symmetric probability distribution centered on the mean, demonstrating that occurrences near the mean happen more often than those far from it.